ETC Labs cooperation with Chainlink to bring Oracle network to Ethereum Classic network
ETC Labs has officially announced a partnership with Chainlink to bring the decentralized Oracle network to Ethereum Classic.
Source: Ethereum Classic Community
Why ETC Labs is partnering with Chainlink?
Because the underlying consensus mechanism maintains specific behaviors, especially decisive, within the network, Ethereum Classic and Ethereum cannot interact with off-chain services. In this regard, Blockchains can only use on-chain transactions to process transactions in a defined manner. While this offers a higher level of security, it has certain limitations, such as being unable to connect to other Blockchain or non-blockchain infrastructures. As a result, developers cannot connect their smart contract apps to DeFi market data, IoT data for insurance, traditional payment systems for payments, etc.
Meanwhile, Oracle is the best solution at the moment. It is capable of solving this problem by building a bridge between Blockchain and the outside world. Oracle recognizes the off-chain connection of the smart contract by reformatting the format of the external connection point (API), making the two different software applications compatible for data exchange. Oracle can then pull data into smart contracts and perform operations on external systems according to predefined instructions.
Chainlink allows smart contracts to access data providers, Web APIs, enterprise systems, cloud providers, IoT devices, payment systems, and other blockchains. Importantly, Chainlink is a proven decentralized Oracle network that enables Ethereum Classic smart contracts to interact with off-chain resources and has the same security guarantees as to the underlying Blockchain. This is important because the security of a smart contract depends only on its weakest component, which means that if a centralized oracle house activates a fully distributed smart contract, it may not be secure.
Chainlink alleviates these concerns by bringing dispersion into the data source and data retrieval process. Developers can decentralize data sources by retrieving data from multiple data providers, such as the price of cryptocurrencies from numerous aggregators. Besides, developers can decentralize data retrieval mechanism by having various independent Chainlink oracle get the same data points to ensure that an oracle is not a failure point.
The extended functionality helps to get more use cases from smart contract on ETC
This extended functionality of the off-chain environment has significantly expanded the number of use cases smart contract developers can create with Ethereum Classic. One such use case is to provide the DeFi application on Ethereum Classic through a price reference contract and secure and reliable access to the ETH / USD price. The referenced contract consists of 21 independent oracle chainlinks, and the price sent by each oracle is summarized and sent on the chain. The use of this aggregated data provides reliable canonical results that can be queried and used by users or DeFi projects.
As ETC and ETC-ETH compatibility increases, supporting Chainlink use cases on ETH is critical to Ethereum’s infrastructure.
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